Dorel Industries (OTCMKTS:DIIBF – Get Free Report) and La-Z-Boy (NYSE:LZB – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Valuation and Earnings
This table compares Dorel Industries and La-Z-Boy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dorel Industries | $1.38 billion | 0.02 | -$171.96 million | ($5.06) | -0.19 |
| La-Z-Boy | $2.11 billion | 0.68 | $99.56 million | $2.19 | 15.84 |
Profitability
This table compares Dorel Industries and La-Z-Boy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dorel Industries | -12.76% | -299.25% | -15.30% |
| La-Z-Boy | 4.35% | 11.34% | 6.03% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Dorel Industries and La-Z-Boy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dorel Industries | 0 | 2 | 0 | 0 | 2.00 |
| La-Z-Boy | 1 | 0 | 1 | 0 | 2.00 |
La-Z-Boy has a consensus target price of $46.00, indicating a potential upside of 32.58%. Given La-Z-Boy’s higher possible upside, analysts plainly believe La-Z-Boy is more favorable than Dorel Industries.
Insider and Institutional Ownership
99.6% of La-Z-Boy shares are owned by institutional investors. 19.3% of Dorel Industries shares are owned by company insiders. Comparatively, 2.7% of La-Z-Boy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Dorel Industries has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, La-Z-Boy has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.
Summary
La-Z-Boy beats Dorel Industries on 11 of the 13 factors compared between the two stocks.
About Dorel Industries
Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.
About La-Z-Boy
La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Wholesale, Retail, Corporate and Other segments. The Wholesale segment manufactures, and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas; and imports, distributes, and retails casegoods (wood) furniture, including occasional pieces, bedroom sets, dining room sets, entertainment centers, and occasional pieces. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of La-Z-Boy Comfort Studio locations, England Custom Comfort Center locations, dealers, and other independent retailers. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. The company also produces reclining chairs; and manufactures and distributes residential furniture. Its Corporate and Other segment sells the products through its website. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is headquartered in Monroe, Michigan.
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